Luxembourg
RAIF Arrives, BoC Issues Green Bonds & Innovation Council Meets
RAIF: New Fund Law Passes
July 14 Luxembourg’s Parliament passed a law officially legalizing the long-discussed framework for reserved alternative investment funds (RAIF). The move is significant for the European fund industry because it allows the RAIF to be setup without direct oversight from the CSSF, Luxembourg’s supervisory body. Instead, the CSSF authorizes independent alternative investment fund managers (AIFM) to supervise the fund. The CSSF is effectively delegating its responsibilities and making the already existing AIFM role more substantial. The RAIF still benefits from a European ‘passport,’ meaning that it can be marketed and managed anywhere in Europe. Consequently, this new, simpler structure decreases time to market and reflects the innovation that lets Luxembourg’s fund industry stay the world’s second largest. The law will likely come into force in the coming days. Full investment fund article
Bank of China Issues First Green Bonds
July 13 Until now, no Chinese financial institution had ever issued a green bond in continental Europe. The Luxembourg Stock Exchange listed and admitted to trading four such bonds with issue amounts totaling $2.8 billion. The Bank of China issued the bonds, representing yet another step both parties have taken in recent months to strengthen their partnership. The proceeds raised from this deal will focus on water, pollution, transportation and renewable energy issues. Full green bonds article
Proposal for European Innovation Council
June 24 CEO of Luxinnovation Jean-Paul Schuler met with a delegation of nine innovation agency representatives at the European Commission in Brussels. Inspired by what the European Research Council contributes to scientific research, the delegation aims to create the European Innovation Council. The idea was first proposed by Carlos Moedas, the European Commissioner for Research, Science and Innovation. Specifically, its purpose would be to help boost innovation and growth in Europe. Next steps were laid out after the meeting confirmed that national agencies can and should contribute to innovation in Europe. Full Innovation Council article
World
Changes to Startup Investing, Austria’s Art VAT & Online Gambling VAT
Online Gambling Loses VAT Exemption Belgium
July 1 Belgium’s House of Representatives adopted a law that will eliminate the VAT exemption in place for online gambling and gaming. Notably, this change excludes lotteries and offline gambling. The law will enter into force on August 1 of this year. Currently, VAT exemptions for gambling are common practice across Europe through the application of article 135 of the EU VAT Directive Full VAT article
Investing in Startups gets Easier
Europe; July 14 In order to grow venture capital and encourage investing in social enterprises, the European Commission has proposed regulation amendments, which should make it easier to invest in small to mid-sized innovative businesses. The labels of European Venture Capital Funds (EuVECAs) and European Social Entrepreneurship Funds (EuSEF) would become available to fund managers of all sizes. Additionally, these amendments would make it easier to market the EuSEF and EuVECA across borders. They would, specifically, control fees and simplify registration. Significantly, this move reflects the Commission’s shift towards strengthening venture capital across Europe. Full EuVECA & EuSEF article
EU Commission Criticizes VAT on Art Resales
Austria; July 22 When reselling a piece of art in Austria, VAT is currently charged. According to the Commission, this infringes upon the VAT Directive because no contractual relationship exists between buyer and artist. As a result, the European Commission requested that Austria change its VAT rules regarding the resale rights on artwork. This reiteration follows a formal request sent in 2014. Furthermore, the Commission asked Austria to change its rules so that non-resident taxpayers no longer need to hire a representative to manage taxes on their behalf. The Commission sees this as a form of discrimination. Full art VAT article
Would you like to know more? Please contact Fiduciary Tucci & Partners to learn about how these updates may affect you and how we can help.